VAT news

Summary of VAT changes announced in the 2015 UK Budget

Ryan Bevan24 January 2016No comments

Five VAT changes were announced in today’s Budget.

1: Changes to partial exemption calculations for businesses with foreign branches.
Supplies made by foreign branches will no longer be taken into account when a partially exempt business calculates the amount of VAT it can recover on overhead costs.

This will reduce the amount of VAT recovery allowed to partially exempt businesses, such as banks and insurance companies, with overseas branches. This is intended to be implemented from 1 August 2015.